Canada Goose to limit department store distribution

Canada Goose is limiting distribution of its luxury parkas to department stores after its sales suffered during the coronavirus crisis.

Releasing its earnings statement on Wednesday, the company said recovery for its own retail outlets is a top priority, where it can make greater profit margins than selling via wholesale.

According to Reuters, shares in Canada Goose Holdings fell 40 percent this year, but saw an 11 percent rise on Wednesday, despite a projection of little revenue in the current quarter.

Department stores are facing challenging retail conditions with forced closures as countries navigate strict social distancing rules. “With a deep recession on the horizon, demand is not expected to bounce back any time soon,” reported Reuters.

Canada Goose said it expects lower orders as stores deal with excess inventory. The company also expects recovery of its own stores and e-commerce to be faster than that of its wholesale partners.

Image via Canada goose